Senate Bill Would Restrict Online Payday Lending

By Evan Weinberger

Law360, New York (January 30, 2013, 2:00 PM ET) -- A group of Democratic senators on Tuesday introduced legislation that would force online payday lenders to comply with relevant state laws when issuing loans to consumers among other new restrictions in the latest attempt at reining in the small-dollar loan industry and curbing predatory loans.

According to the four senators sponsoring the legislation, payday lenders have taken to the Internet to avoid state laws barring features like exploding interest rates that can expand to nearly 500 percent. So far more than 20 states have passed usury...